CENTURY Properties Group, Inc. (CPG) is setting aside P30 billion for capital expenditure (capex) over the next three years to fund its expansion plans and to complete ongoing projects.
CPG Chairman Jose E.B. Antonio announced the capex plans at the company’s shareholder meeting in Makati City Friday. He added that the listed firm hopes to exceed hit P2 billion in leasing revenues by next year.
“We have to diversify net income mix with more sustainable cash flow and recurring income… We will execute this strategy by earmarking P30 billion in the next three years to continue driving CPG’s expansion into allied real estate segments, specifically horizontal affordable housing in key urban centers outside Metro Manila, commercial leasing and a new product line of medium-rise residential buildings,” he said.
“Our ultimate goal is to grow CPG’s businesses and achieve a revenue mix of one third each from our three main segments of recurring income portfolio, horizontal affordable housing through PHirst Park Homes, and Urban Villages — to have a diversified net income mix with more sustainable cash flow and recurring income,” he added.
Part of the company’s plans for growth is the expansion of CPG’s leasing assets in Pampanga, Quezon City and Makati; opening residential communities in Quezon City, Mandaluyong and Pampanga; and continued expansion of leisure and tourism business in the provinces, starting in Nasugbu, Batangas.
Also during the meeting, the company welcomed Mr. Antonio’s son, CPG Co-Chief Operating Officer and Managing Director Jose Marco R. Antonio, as its new president and chief executive officer to replace his father.
In a roundtable discussion with reporters, the new CPG CEO said four in-city residential development projects are scheduled for launch within the next 12 months, with sites eyed in Mandaluyong, Quezon City and the greater Pampanga area.
He also said he plans to “transform” CPG to develop “asset classes and segments that will continue to make CPG very relevant to not only the real estate homeowners but as well as real estate corporate tenants and multinational tenants.”
In a statement, the senior Mr. Antonio said: “This new role of Marco in the company affirms the Board’s trust and confidence in his leadership, given his more than two decades of professional experience and wide exposure in the company’s operations handling different aspects of the business… We look forward to an even more energized company under his management.”
The listed property developer booked attributable net profit of P367.8 million in the first quarter, up 36% from the same period last year, driven by a 29.52% jump in leasing revenue. — Denise A. Valdez